SYNOPSIS ALL INDUSTRY CONFERENCE CALL June 22, 2011

To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.

 

If there is a subject you would like to see addressed on June 29, please email Mike Barry at michaelb@iii.org.

 

Wall Street Journal reports White House eyeing insurance expert for appointment to the Financial Stability Oversight Council (FSOC):  A few hours after our call concluded, a story Mike Barry mentioned was in the works appeared on The Wall Street Journal’s (subscription required) website.  Former Kentucky insurance commissioner S. Roy Woodall is being considered by the Obama administration for the insurance slot on FSOC, D.C.-based reporter Deborah Solomon writes.  The I.I.I.’s Bob Hartwig is quoted in the piece, and the American Insurance Association is also mentioned.

Profits and Profitability Fell As Net Losses On Underwriting Ballooned:  PCI, ISO and I.I.I. issued a joint news release with the detailed numbers on Wednesday, June 22, and Dr. Hartwig’s analysis was posted online on the same day.

The National Insurance Crime Bureau (NICB) found that California has eight of the 10 cities where auto theft is most prevalent, up from six cities last year:  Fresno, California, with a theft rate of 812.40 per 100,000 people, topped the list in 2010. This compares with State College, Pennsylvania, which had the lowest rate of auto theft in the nation, with just 29.87 thefts per 100,000 people.  The NICB news release on Tuesday, June 21, generated widespread coverage, including this same-day Forbes article.

The nation’s highest court rules that a massive lawsuit accusing Wal-Mart of sex discrimination could not proceed as a class action:  The cases of the 1.6 million women who were allegedly harmed by the retailer’s employment practices were not sufficiently similar to be considered a single class, the court ruled, in a decision announced on Monday, June 20.  The majority opinion, written by Justice Antonin Scalia, concluded that the allegations against Wal-Mart were too vague and that the evidence was not strong enough to indicate a common injury to all women employed since 1998 in approximately 3,400 Wal-Mart stores in the U.S.  The ruling is expected to have far reaching effects on other employment class actions as lower courts carefully examine the factors used to justify treating mass claims as a class.

CBS affiliate in Tucson offers continual updates:  The station, KOLD-TV, archives the latest reports on the state’s wildfires.

The action was taken as the Souris River got closer to flood levels:   Mayor Curt Zimbelman said 11,000 of the city’s residents have been told to evacuate as the Souris River gets closer toflood levels. If water begins spilling over the city’s protective levees, Minot will sound its sirens. The river is filled with spring snowmelt and rain from Canada and north central North Dakota, and water levels are expected to rise over the next couple of days, according to this Tuesday, June 21, Associated Press article.

Associated Press readying story on some of the newer issues that homeowners have to face:  The I.I.I.’s Hartwig spoke this week with Eileen AJ Connelly, a New York City-based personal finance writer for the AP, about homeowners insurance coverage issues, with part of the discussion focusing on the severe tornadoes that hit parts of the U.S. (e.g., Springfield, Massachusetts) that normally do not experience twisters.

Smart Money, MSNBC, Birmingham News, Entrepreneur magazine, and Philadelphia Inquirer contact the I.I.I. for insurance insights:  Elizabeth O’Brien of Smart Money is looking at how U.S. consumers cut their auto and homeowners insurance premiums during the economic downturn, and has been talking with the I.I.I.’s Barry on the story….MSNBC associate producer Mina Adibpour, who works on the cable network’s ‘Caught on Camera’ series is compiling data on auto insurance fraud, and what it costs honest policyholders nationwide….Birmingham News reporter Thomas Spencer is readying a story on how Alabama’s property insurers would apply for higher rates, if this year’s severe storms prompted them a rate increase from the Alabama Insurance Department….Carol Tice, a freelance reporter for Entrepreneur, consulted the I.I.I.’s Loretta Worters about the insurance issues arising from the launch of a home-based business….Claudia Vargas of The Philadelphia Inquirer is dealing with the I.I.I.’s Jeanne Salvatore on the insurance repercussions emerging from a recent fire in Camden, New Jersey.

 

Governor Bentley’s remarks were made in an exclusive interview with the Associated Press:  The governor also told the Associated Press in a Monday, June 20, article that he is considering putting some of the money Alabama hopes to get from BP for the 2010 Gulf oil spill into a loan fund to help Alabama’s homeowners cover future rebuilding costs. 

Alabama Insurance Underwriting Association (AIUA) policyholders will see their rates drop 6.2 percent, on average, effective August 1, 2011:  But the AIUA’s rate relief may be temporary if reinsurance rates increase next year, which some experts predict will happen because of reinsurer losses from worldwide disasters, according to this Tuesday, June 21, front page story in the Mobile Press-Register.

Commissioner Mike Chaney addressed the Gulf Coast Business Club, and gave his overview of current market conditions:  The Biloxi Sun Herald’s Anita Lee filed this same-day (Tuesday, June 21) story on the Commissioner’s remarks.

Tile roofs are believed to withstand hurricanes better than roofs built with other construction materials:  The South Florida Sun Sentinel’s Julie Patel filed a story on Monday, June 20, saying a year-old state inspection form is being blamed for homeowners in South Florida not receiving discounts for tile roofs. 

Oklahoma Commissioner John Doak hosts Tulsa workshop to help residents avoid some of the problems associated with hiring suspicious contractors to repair storm damage:  “If you go to our Web site you can find qualified contractors that have already met some certain requirements,” the Commissioner said, according to this Tuesday, June 21, KRMG news radio story.  Commissioner Doak added that his office is particularly aware of scammers that target the elderly.

The State Senate was debating how to proceed during a special session in Austin on Wednesday, June 22:  The Austin American-Statesman and The Houston Chronicle, among others, have been covering the issue closely.

A six-day stretch of storms in May 2011 spawned by the same system which hit Joplin, Missouri, on May 22 caused insured damage of upwards of $400 million in Ohio:  This Tuesday, June 21, story was on the front page of The Columbus Dispatch.

The rules set forth by the Oregon Department of Consumer and Business Services are aimed at protecting consumers who purchase annuities:  The Oregonian has details, and explains that the measure’s origins date back to a regulatory action taken against a Conseco subsidiary, Bankers Life and Casualty, in 2008.

Michael Riley will serve as Acting Insurance Commissioner effective Friday, July 1, 2011:  Current Commissioner Jane L. Cline will retire as of Thursday, June 30,  Riley first joined the Office of the Insurance Commissioner in October 2001 as an Administrative Services Manager and rose to become Assistant Commissioner of Regulation. During his tenure, Riley also served as project manager for the privatization of the state’s workers compensation system.

 

—Ben Berkowitz of Reuters tweeted the latest figure he is hearing for tornado related-insured losses arising out of the April and May 2011 natural disasters: $6.29 billion.

 

–Julie Patel of the Sun Sentinel tweets, “Citizens policyholders: Would you rather have rate hikes now to build insurer’s reserves or pay $1000 after a big storm?” and links to an article from late last week that is about how the average Citizens Property Insurance policyholder could pay an estimated $1,000 in fees on their home and automobile insurance policies if a major hurricane hits Florida. 

 

–A story that was mentioned last week on the I.I.I.’s media call was entitled, “Why Does Everyone Hate No-Fault Car Insurance?” that has been enjoying a wide sharing on Twitter after making its initial debut on the Fox Business Network’s website.  This article quotes I.I.I.’s Barry and is being tweeted about by users whose Twitter feeds focus on insurance buying tips. 

 

The I.I.I. is cited regularly in the media as an authoritative source of insurance information. To access the current I.I.I. press clips, click here

 

For an I.I.I. Blog Search, click here.